CLUSTER ANALYSIS. Similarity measures. Assumptions for the application of cluster analysis. Hierarchical and non-hierarchical methods. Deciding on the number of clusters. Interpretation and validation of results. Profiling clusters.

MARKET EQUILIBRIUM AND MARKET FAILURES: Partial equilibrium.General equilibrium. The existence of general equilibrium. Fixed point theorems. Stability of equilibrium. Efficiency of equilibrium. Welfare economics. The first theorem of welfare economics. The second theorem of welfare economics. Market power. Natural monopoly. Externalities and public goods.

Problem of induction: philosophical problem of induction; justification of induction and new problems, probability and induction, philosophy of probability; inductive logic; Bayesianism and itsproblems.

Demarcation of science and pseudoscience; verification and falsification; natural and social sciences; problems of falsification.

Problem of scientific method: logic of discovery and logic of explanation; inductive-deductive and hypothetico-deductive model. For and against method.

Scientific explanation: Hempel’s model; refutation and improvement of models; scientific explanation and probability; unity and economy of science; problem of explanation in social sciences. Structure of science;logical reconstruction of science; natural laws; scientific laws and regularities; laws and necessity; laws and social sciences; scientific theories; the notion of scientific paradigm.The development and the unity of science: cumulative models; the notion of scientific revolutions; Kuhn, sociology of science and science wars; The question of unity of science, physicalism and reductionism, philosophy of social sciences.Research ethics in the context of philosophy of science. Values and objectivity. Equal opportunities and inverse discrimination; Should society be protected from science?